Article ID Journal Published Year Pages File Type
7373387 Mathematical Social Sciences 2016 4 Pages PDF
Abstract
I define constant, increasing and decreasing returns to scale in the production of innovations that occur randomly with a probability that depends upon resources spent in research. I analyse the mathematical representations of random processes of innovation that exhibit constant, increasing or decreasing returns to scale in that sense and determine their respective functional forms. I also give two complementary conditions, which are respectively sufficient for increasing returns to scale, and decreasing returns. Finally, as a particular case, I show processes that use only one factor of innovation and satisfy constant returns form a one-parameter family.
Related Topics
Physical Sciences and Engineering Mathematics Applied Mathematics
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